SENATE BILL REPORT

SB 5699

BYSenators Williams, Johnson, Moore, Amondson, Matson, Saling, Wojahn and McCaslin

Extending the historic property tax exemption.

Senate Committee on Ways & Means

Senate Hearing Date(s):February 27, 1989; March 6, 1989

Majority Report:  Do pass.

      Signed by Senators McDonald, Chairman; Craswell, Vice Chairman; Amondson, Bailey, Bauer, Bluechel, Cantu, Gaspard, Hayner, Johnson, Lee, Moore, Newhouse, Niemi, Owen, Saling, Smith, Talmadge, Warnke, Williams, Wojahn.

Senate Staff:Terry Wilson (786-7715)

                  February 2, 1990

AS PASSED SENATE, FEBRUARY 2, 1990

BACKGROUND:

Current law provides for qualifying historic buildings to be eligible for a "special valuation" for property tax levies for a ten year period after they qualify.  This special valuation is equal to the building's assessed value less the costs of restoring or rehabilitating the property.  These costs must be equal to at least 25 percent of the assessed value of the property (exclusive of the value attributable to land) before restoration or rehabilitation.  At the expiration of the special valuation period, the exempt costs are treated as new construction.  No structures or other property may become eligible for special valuation after December 31, 1991 under current law.

SUMMARY:

The section of law imposing the December 31, 1991 cutoff for eligibility is repealed.  An obsolete phrase is deleted from another section of the law. 

Appropriation:    none

Revenue:    yes

Fiscal Note:      available

Senate Committee - Testified: Michael Sullivan, City of Tacoma (for); Jake Thomas, DCD (for); Mary McCumber, City of Auburn (for); Gary Chaleo, Centennial Commission (for); Howard Anderson, developer (for); Fred Saeger, Washington Association of County Officials (against); Bernie Ryan, King County Assessor's office (against); Karen Gordon, City of Seattle (for)